Nvidia, AMD Could Stand To Gain Big Time As Japan Proposes $7 Billion Chip Deal In Trump Tariff Talks Amid China Export Curbs: Report

Japan is reportedly planning to import nearly $7 billion worth of U.S.-made semiconductors in a move that could significantly benefit chipmakers like Nvidia Corporation NVDA and Advanced Micro Devices AMD amid ongoing trade negotiations with the Donald Trump administration.

What Happened: Japan has proposed purchasing up to 1 trillion yen ($6.94 billion) in U.S. semiconductor products, reported Reuters via Asahi newspaper, which cited unidentified sources.

The Japanese government would subsidize domestic companies that purchase the American chips, the report said. The plan is designed to help reduce the U.S.'s approximately 10 trillion yen trade deficit with Japan.

Japan's chief tariff negotiator, Ryosei Akazawa, is expected to visit the U.S. around May 30 for a fourth round of trade discussions, the report added.

See Also: Alphabet ‘Well Positioned' For Google Search Dominance: Analyst Says Can ‘Navigate The Shift To AI Search'

Why It's Important: Last month, shares of Nvidia and AMD encountered renewed pressure after the U.S. government imposed new restrictions on AI chip exports to China and several other areas.

China continues to be a key market for Nvidia, with it contributing 13% of its revenue in the last fiscal year. However, CEO Jensen Huang earlier this year said that the company's market share in China has dropped sharply, from 95% prior to 2022 to just 50% now.

The April ban on the H20 chip led Nvidia to write off $5.5 billion in inventory and forgo roughly $15 billion in potential sales.

On the other hand, during AMD's first-quarter earnings call, CEO Lisa Su stated that the company had always anticipated some restrictions on leading-edge GPUs being shipped to China and had already factored these China-related limitations into its total addressable market (TAM) estimates.

Earn 7.2% — No Matter What the Fed Does

Markets expect rate cuts — but your earnings don’t have to suffer. Lock in 7.2% until 2028 from ten individual bonds.

Earlier on Tuesday, it was reported that Japan plans to earmark 900 billion yen (approximately $6.3 billion) as part of emergency economic measures aimed at offsetting the impact of heightened U.S. tariffs. The total value of the stimulus package could climb to 2.8 trillion yen ($19.7 billion) when including local government contributions.

Price Action: Nvidia shares inched up 0.074% in after-hours trading to $135.60 at the time of writing, following a 3.21% gain during Monday's regular session, according to Benzinga Pro. On Tuesday, AMD shares gained 3.85% during the regular hours and an additional 0.37% in the after-hours trading.

Meanwhile, NVDA received a growth score of 98.78% from Benzinga Edge Stock Rankings, signaling robust market momentum. Click here to compare it with other top-performing stocks like AMD.